Here’s the blunt truth: when a 99-year leasehold ends in Dubai, the property goes back to the freeholder—unless you’ve secured a renewal in writing.
The Context (and why this catches people out)
Dubai’s leasehold model gives you long-term use, not permanent ownership. You can live in it, rent it out, even sell your remaining lease term—but the land itself isn’t yours forever. When the clock runs out, rights revert to the original owner. That’s by design, and it’s different from freehold where you own indefinitely.
Now, I’ve seen smart investors plan renewals early and protect their upside. I’ve also seen others assume “something will work out” and then scramble when renewal isn’t offered. Honestly, the difference is preparation.
What Exactly Happens at Year 99?
- Rights revert to the freeholder if there’s no renewal—full stop. That includes any improvements, unless your contract says otherwise.
- No automatic extension. Your lease ends unless you negotiate and sign a renewal.
- You may sell or rent during the term, but your ownership is limited to the lease period.
How Lease Expiry Works Under UAE (Dubai) Law
- Reversion on expiry: When a lease expires, rights go back to the landlord/freeholder unless renewed.
- Notice matters: Landlords typically notify if they won’t renew, using formal channels (e.g., registered mail/Notary Public).
- Holdover occupancy: If a tenant stays and the landlord doesn’t object, the lease can auto-renew on the same terms for the original period or one year (whichever is shorter).
- Lawful refusal to renew: Owners can decline renewal for specific reasons—demolition/major renovation, personal use, or tenant breach—backed by evidence.
- Handover protocol: Tenants give written move-out notice (commonly one month), settle dues, and hand back the unit in good condition; Ejari is then cancelled.
- 99-year leaseholds: At expiry, property rights revert unless a renewal is agreed; improvements may also revert unless the contract says otherwise.
- Disputes: Unresolved issues go to the Dubai Rent Dispute Settlement Centre.
My Take (and what I advise clients to do)
I like long leases for stability. But here’s the thing: your leverage fades as the end date approaches. The earlier you prepare, the more options you keep.
A practical, no-drama game plan
- Audit your lease 24–36 months out. Identify renewal rights, notice periods, and any clauses on improvements/reversion. (If it’s silent, assume reversion.)
- Open renewal talks early. Aim for a memorandum of understanding on term, rent/premium, and treatment of improvements before you lose leverage.
- Model the numbers. Compare (a) renewal premium vs. (b) selling the remaining term vs. (c) walking away. Don’t forget handover costs and Ejari cancellation steps at expiry.
- Document everything. If you’re upgrading the property late in the term, secure written agreement on whether improvements revert or are compensated.
- Plan for holdover only if strategic. Auto-renewal can happen when the landlord doesn’t object, but don’t bank on it as your main strategy.
- Know your dispute route. If negotiations stall or notices are contested, prepare a file for the Rent Dispute Settlement Centre.
Bottom Line
A 99-year lease in Dubai gives you time, not perpetuity. Use the last years wisely: review your contract, negotiate early, and control the outcome—don’t let the calendar do it for you.
Disclaimer: This article is for general information only and does not constitute legal advice. The author assumes no responsibility or liability for actions taken based on its contents. For advice on your specific situation, consult a qualified lawyer.
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